Thanks for your quick reply!

As it seems the difficulty lags behind the price increase or drop.

Could you please tell me what is the main reason for this phenomenon?

Hello,

Our company is considering to invest in Bitcoin mining and I'm wondering whether you could help me in the following question:

- In theory, we see that as price decreases, mining profitability drops for many miners, which as an endresult makes them quit the business, which should ultimately decrease network difficulty.

- However, in reality the things seem to work the other way around: for instance after the big burst in early 2018, the network difficulty kept increasing despite the falling bitcoin prices.

Our question is what do you think of the above two thoughts?


Also, another question, what would be the correct formula for calculating the effect on mining revenues  of a certain % increase in network difficult?

Is this too vague: new revenue = old revenue / (100% + percentage  increse in network difficulty)?



Thank you in advance for your help!

C.